* Note: Prices are in Million (M) USD.
Description:
Enphase Energy is an American energy technology company headquartered in Fremont, California. Enphase designs and manufactures software-driven home energy solutions that span solar generation, home energy storage and web-based monitoring and control.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $369 M
Debt : $1,308 M
EBITDA : $226 M
Net Debt (Debt - Cash): $939 M
Since EBITDA cannot cover net debt within 3 years, Avoid This Stock.
This criteria used industry in which company operates:
Sector: Technology
Industry: Semiconductor Equipment & Materials
Based on sector, 5 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 12.96
Since Forward PE Ratio is less than 15, 5 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $397 M
Average Revenue: $649 M
Revenue Converted To Free Cash FLow(%): 61%
Avg Free Cash Flow Growth Per Year (Last 5 Years): 41.90%
Since Free Cash Flow (FCF) to Revenue percentage is greater than 25, 5 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $1,330 M
Revenue 4 Years Ago (2020-12-31): $774 M
Last 5 Years Average Revenue Growth: 14%
Since Revenue Growth is between 10 - 15, 3 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $140 M
Share Count 5 Years Ago (2020-12-31): $142 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $3.46
Trailing 12-Month Earnings Per Share (EPS): $1.39
Average Earnings Per Share (EPS): $2.43
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: -373%
Since Average ROE is negative, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $31
52-Week Low: $33
Threshold Price (15% Above 52-Week Low): $38
Since Current price is within 15% threshold, 5 points assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $5,193 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Value-Trade has assigned 27 points to above Enphase Energy Inc (ENPH) stock.
Last 9 Years Avg PE (Limited to last 9 years of EPS data) 36, Fair Value PE 25, Industry Based PE is 25 and Growth based PE is 10. Based on these all values average assigned is 24.00.
Value-Trades has assined P/E value 24.00. Since an average (Current Year EPS + Next Year EPS) earning per share is $2.425.
The fair value of Enphase Energy Inc (ENPH) stock should be (24.00 x $2.425) = $58.2
